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IN ASSOCIATION WITH Salaries spike as talent becomes mission-critical to gaming sector growth SA£ARY $URV€Y 2022MAY - JUNE 2019 Register now: icelondon.uk.comContents Overview Key trends for 2022 Global snapshot World view Salaries by function and role 8 9 10 9 6 4 Salary Survey 2022 For Pentasia: Editorial and data analysis: Andre Spahn, Jane Woodyer, Will Sawney For iGB: Head of B2B content: Robin Harrison Data editor: Tansu Yilmaz Design: Ogo Ikeogu Production: Guy Parsons Published November 2022 ©2022 iGaming Business Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the permission of the publisher. The information contained in this publication is believed to be correct at the time of going to press. While care has been taken to ensure that the information is accurate, the publishers can accept no responsibility for any errors or omissions or for changes to the details given. Readers are cautioned that forward-looking statements, including forecasts, are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified. Consequently, the actual performance of companies mentioned in this report and the industry as a whole may differ materially from those expressed or implied by such forward-looking statements. Published by iGaming Business, part of Clarion Events. Registered office: Bedford House, 69-79 Fulham High Street, London SW6 3JW Tel: +44 (0) 207 384 7763 Registered number: 3934419 10 IN ASSOCIATION WITH PENTASIASALARY SURVEY 2022SALARY SURVEY 2022 SALARY SURVEY 2022 OVERVIEW “To successfully hire in the current landscape, companies need to think seriously about giving candidates – and existing employees – what they want” ALASTAIR CLELAND, MANAGING DIRECTOR, PENTASIA – PART OF THE CONEXUS GROUP , W elcome to the fifth edition of the iGB-Pentasia salary survey, our annual benchmarking of global igaming pay. To introduce this year’s issue, Alastair Cleland discusses the major talking points of 2022, among them a continued shortage of talent, the industry’s willingness to use innovative talent solutions, and candidates’ demands for more rounded packages beyond a basic salary. Talent is creating significant challenges for the igaming sector going into 2023. It’s a candidates’ market with high demand for talent and a shrinking talent pool. This year’s headline 12.5% salary growth figure reflects the increasingly competitive nature of the talent market. Demand for talent is driven by our sector’s high-growth mode. Contributing factors include the legalisation of sports betting in the US; rising adoption of mobile and online payment methods boosting the growth of the online gaming market; and new audiences, with more female players engaging with igaming. Getting ‘talent’ right will, however, be mission- critical for individual businesses, and the sector as a whole. TALENT SHORTAGES ACROSS THE INDUSTRY As our research confirms, we face a global talent shortage, which is directly affecting igaming’s ability to grow. This, in turn, is impacting salaries. Last year we saw a substantial uplift in salaries as the industry bounced back after the uncertainty of 2020. This year’s headline figure of 12.5% average salary growth builds on this trend. However, in many roles, the uplift is even more significant. For example, there’s a limited pool of compliance candidates with the right experience and specialisms. You can expect to pay 28% or more to secure a new hire in these legal and regulatory roles. Similarly, the tech skills shortage continues to create problems for the industry, particularly for companies wanting to hire people with expertise in new technologies like AI, VR, IoT and cryptocurrency. Tech roles have also become geographically standardised and it is no longer possible to find people from a ‘cheaper’ talent market. Put simply, the scarcer the commodity, the more expensive it becomes. As the talent shortage bites, gaming companies are increasingly open to game-changing new models of talent acquisition and management. Enterprise- level talent solutions offer significant improvements in performance, efficiency and speed. Popular models include RPO (recruitment process outsourcing) and ‘augmented teams’ – as provided by our partners VentureStep – which offers rapid access to pre-built talent teams, particularly in tech. Training and upskilling have become critical too. Our partners at iGaming Academy now train more than 35,000 professionals every year on specialist skills and compliance, with the US market most active. Hiring from outside industry is often the only way. NEW MARKETS AND A MATURING INDUSTRY Perhaps most surprising is that senior management roles generally have a salary ceiling yet have experienced a 16% salary increase from 2021. The primary driving force is the US, where new roles are being created at the senior level as more states open legislative doors. But we’re also seeing this in other markets as the igaming industry Salary Survey 2022 Introduction 04IN ASSOCIATION WITH PENTASIA €65k Typical game designer remuneration in 2022 12.5% Increase in median gaming salary over the past year £100k Average salary for a commercial director 16% Wage growth enjoyed by senior management evolves globally and C-level and strategic leadership roles become increasingly valued. Another sign of a maturing industry is demand from candidates for generous benefit packages and equity. In the US the total package, not just salary, is a big factor in securing talent and not only for C-level positions. As competition for candidates continues to increase and the igaming industry looks to attract candidates from other sectors too, it’s becoming a global trend. To successfully hire in the current landscape, igaming companies need to think seriously about giving candidates – and existing employees – what they want. Whether that’s salaries and benefits packages, including flexible work options, or investing in retention and development of in-house talent, these factors will ultimately give employers a competitive edge. It’s a challenge, but one we feel the igaming industry is in good shape to take on. 180K 160K 140K 120K 100K 80K 60K 40K 20K 0 A nalytics & Data Compliance, Legal & F r aud Cust omer Ser vices Finance & Oper ations Mark eting MD & C-Suite Pr oduct & Pr oject Sales & Account Management T ech 2019-202020-212021-22 Salary data compiled exclusively by Pentasia, based on advertised, offered and placed rates. SALARY AVERAGE BY CATEGORY 70K 60K 50K 40K 30K 20K 10K 0 On-siteRemote 2019-202020-212021-22 SALARY AVERAGE, REMOTE VS ON-SITE 1.2K 1K 0.8K 0.6K 0.4K 0.2K 0 On-siteRemote 2019-202020-212021-22 REMOTE ROLES ON THE RISE 05 What’s your view? Tweet @iGamingBusinessSalary Survey 2022 Trends 06 30% PAY RISES ARE NOT OUT OF THE QUESTION People are no longer prepared to move jobs for a modest pay rise. Unless they’re genuinely unhappy with their current employer, candidates need serious incentives to explore new opportunities. A growing number of roles can now command increases approaching or exceeding 30%, especially for candidates with 3+ years of experience or specialist skills. CONSOLIDATION IS RIFE The pace of mergers and acquisitions activity in the igaming industry is brisk as suppliers and operators focus on building competitive positioning and broader capabilities. Drivers for M&A are also shifting away from market access and toward acquiring technology, content and talent. LEGISLATION IS DRIVING DEMAND Regulation is having a significant impact on recruitment as countries either regulate igaming for the first time or, in the case of Germany, reregulate. New markets are creating demand for candidates from across the entire igaming sphere, with compliance and legal experts seeing a significant uplift in salaries where regulations are particularly stringent. WANTED: STRATEGIC LEADERSHIP While the igaming industry includes many of the land-based giants, it’s a relatively young sector with numerous challengers and startups that are now maturing, creating demand for more strategic and C-level roles. Igaming companies recognise the value that exceptional leadership adds and are increasingly willing to overcompensate, often in the form of bonuses and long-term incentive plans (LTIPs), to ensure they secure the required level of experience. REMOTE IS THE NORM Employers must now pay more to get candidates into the office, even just for one or two days a week. Tech roles have gone almost entirely remote and candidates across all functions expect remote or hybrid options as standard. Remote has also created an environment for ‘geographic standardisation’, where location no longer impacts salary levels. Will Sawney SALARY SURVEY 2022 KEY TRENDS FOR 2022 “Employers must now pay more to get candidates into the office, even just for one or two days a week” WILL SAWNEY, HEAD OF MARKETING BUMPER RISES, REMOTE ROLES AND MORE “A growing number of roles can now command increases approaching or exceeding 30%, especially for candidates with 3+ years of experience or specialist skills”AN URGENT ISSUE FOR IGAMING Igaming has a significant gender diversity problem. Across the industry, just 27% of executives are female, with that rate falling to just 15% at C-level. The gender pay gap further exacerbates the problem; female staff are routinely paid less than their male counterparts. Achieving greater gender diversity within gaming matters. Why? Well, diverse organisations – and this includes minorities of all kinds – make better decisions and drive stronger business outcomes. Diversity has been proven time and again as a wise business choice. Gaming’s customer base is also far more balanced than its workforce. According to a YouGov poll, 33% of men and 24% of women in the UK placed a bet last year. Increasing the number of female executives and leaders would improve representation and, surely, deliver better services for this critical demographic. Pentasia believes strongly that the gender diversity issue within igaming deserves attention. We’re committed to doing something about it and are always open to connecting with ambitious organisations ready to make a change. Kerry Gillitt “Diversity has been proven time and again as a wise business choice” KERRY GILLITT, PRINCIPAL CONSULTANT – LEGAL AND COMPLIANCE DIVERSITY MATTERS 27% Percentage of female executives in igaming Source: Pentasia 15% Percentage of female C-level executives in igaming Source: Pentasia 24% Percentage of UK women who placed a bet in 2021 Source: YouGov IN ASSOCIATION WITH PENTASIA 07SALARY SURVEY 2022 Canada Significant growth and expansion make this an increasingly exciting and lucrative place to build an igaming career USA There’s a benefits battle here, with equity, remote work and unlimited paid time off examples of ammunition in a competitive talent market Malta Remote work increasingly draws from the local workforce and once again employers are having to look beyond the island for talent UK The hiatus of the Gambling Act review has slowed compliance hiring, but the tide could quickly turn in 2023 Singapore With a recently established new gambling regulator, this market is primed for growth following Covid uncertainty Brazil Increased hiring activity and new regulations on the horizon could lead to Brazil becoming a global frontrunner in igaming GLOBAL SNAPSHOT Salary Survey 2022 Location commentary 08Germany A particularly candidate-driven market where salaries continue to increase at above- average rates WORLD VIEW 2022 IN ASSOCIATION WITH PENTASIA 09 What’s your view? Tweet @iGamingBusiness EUROPE The industry-wide talent shortage is strong, with hiring struggles found throughout Europe. In the UK, the market remains buoyant but Brexit restrictions have made it more difficult for continental employers to hire out of the UK. Salaries no longer vary between western and eastern Europe resulting in remote teams in different locations. Tech talent is increasingly being hired as a complete team, a service delivered by our partners VentureStep as ‘augmented teams’. NORTH AMERICA North America’s talent market has turned somewhat, with significant layoffs as companies steer towards greater profitability. However, this has not eased the talent shortage to anything like the level clients expect; it’s still hard to find good people and salaries continue to rise. Canada is also seeing growth, but as a more established region the candidate market is not as volatile as the US. ASIA An exciting region with huge potential, Asia still faces issues with stability and regulation. Finding the right level of specialist candidates in many regions remains extremely challenging. Indian talent is increasingly strong and is commanding higher rates, though relocation remains challenging. Remote work has seen tech specialist candidates more easily integrate into European and US operations. REST OF THE WORLD A considerable premium is attached for those able to bring experience from established markets into emerging ones. In Latin America, countries such as Mexico and Brazil are evolving fast, which is likely to drive huge talent demand. Talent continues to be in demand with significant interest in Colombia and Argentina. In Africa, meanwhile, it’s Kenya, South Africa and Nigeria that stand out as highly active.Next >